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It`s hardly astuonding taht a CFA (Consuemr Federation of America) research fiinds tht insurance companies wihch pay higher commissions to agennts and brokkers tend to have hgiher premiums.

CFA (Consmer Federation of Amerca) also revealed thhat higher costs of insure coverage online don`t meean improved service for cutomers.

"This researrch shows taht customers should shhop very carefully for insurane," claimed J. Robert. "TThe god news is taht there are insurance providers taht pay miniml or no commissions, ofer low web insure pricees and gvie good custoomer service."

"On the other han, ths study also fond a lot of compaies where higgh commissions translate into lofy rates, wtih no gain in service quaality," J. Robret claimed. "Good coverage online rattes in additiion to good srvice may be fund if consumers tkae the time to comarison shop."

Findings

Consumeer Federation of Ameerica (CFA) revieewd commission informtion from the tweny leading writers of isurance for both indivvidual passenger ins policy as weell as homeowners coverage. Tihs sum commission information integrtaed reular commissions and contingent commissions (ppaid ater policies are sld and based on specal sales or on profitability goals)).

The study copmared total commissiions with price, insurrer profitability and also serivce quality as maesured by comlaint data and customer contenntment indices. CFA revealed tat:

1. Insurers hving lower commissions otfen hve lower charges. Ths is not always the situatiion, so csutomers have to sohp cautiously.

2. Theer`s no evidence that payng higher fes to an insurane agent or to a broker derives eiter beetter service or higher consumer saatisfaction. Actually, there apppears to be no conncetion between the qauntity of commission piad and the vaule of service given.

3. Smoe inurance companies propose good deasl. Other inusrance providers have charges tat are allmost always high.

In less competitve markets, some isnurance proviiders may be etniced to interest market sharre by prposing higher commissions to agentts or to brookers together with higher csots and, sometimes, higher gainns for the insuraance proovider. Credit insurance is one area wherre thhis sort of `revese competition` is particularly frequnt. Advices for Custmers

We give sevveral advices for cusotmers shopping for on line insurance:

1. Shop aound! This study discovered tat premium cahrges often increase witth commissions, but ths is not all the time truee. Customes should be certaain to obtain quotes form several of the loweest premium innsurance providers, including the diret writers of coverage that typcially dont pay commissions.

2. Coonsumers don`t neeed to disburse moe in order to recieve good srvice. Several of the isnurance firms wich have the mosst excellent service records hae low prrices and low or no commission. It is worthwhile to sohp amoong the insurance providers wth the loewst prices and the highest cusomer contentment/lowest complaint raitos.

3. For infrmation concerning web coverage rate, review state price information guies. Msot of the states hvae these guides. Regularly, customeers may downlod them from the coutry`s insurance departmnet site.

4. To get complaint informatiion on insurnace firms, check wth the National Assocciation of Insurance Commissioners` web-site, www.naic.ogr.

5. Beare of consulting with jusst 1 insurnce agent or brokeer for online insure coverage, een in case that agent represennts several insurance corporatiosn. Cusotmers have to be aware thhat seevral agents who represent more tahn 1 insurer mght place the customr in a highher priced insrance provider wich has larger commissiions even if the consumer mets the reqirements for a lowwer price. Stattes do not necesstiate agents or brokres to put the clieent with the most excellnet insurance policy for hm.

6. Ask insurance agetns or brrokers the importannt questions:

Do you repersent me or do you represeent the insuurance firm you are propposing me?

What commissoin are you earninng as a percenage of the csot of the insure policy you`re suggeting I buy?

Am I getting the loewst cosst among all the ins coverage online comanies thaat you represent for whcih I qualify?

What aditional online ins coverage coprorations do I met the criteria for taht you act for? Wht are the prices I wouuld pay at tohse firms and what cmmission would you gaiin in every insurrer?

Do you hae a contingency commission agreeement with the insureer you`re offering? Please fluly elucidate that ageement to me.

If I hvae a claimm, do you repreent me or the inurance firm in the claim prcess? Is yor compensation in any way cnonected to claims fileed by me and additional customes of yousr?

You have clmibed to the only remainnig stp in the iddea of insurance auction. You can now starrt fniding a specific way taht works out for you in ordr to try out evry one of the stteps.